Strong indications show that, after a three-year lull, the Battle of the Banks for home loan market share is about to heat up again – to the benefit of homebuyers and the property market in general…

“This month’s decision by major lender Absa to once again start accepting applications for 100% loans from mortgage originators (Mortgage Plus) is, we believe, just the first salvo in the renewed battle”

“The move will no doubt prompt counter-measures from the other banks anxious to retain and gain top quality clients, and shrewd consumers will be the real winners.”

There will no doubt be many people, he says, who believe this scenario is wishful thinking on his part, “but even now, most lenders are already offering bonds of up to 100% to their own existing clients in good standing – and bonds of 90% on average to new clients – despite their stated determination just a few months ago to insist that every potential borrower pay a sizeable deposit.

“What is more, I am not suggesting that the banks will immediately relax their lending criteria. Bond applicants will still need to have excellent credit records, low debt loads and good employment prospects in order to be approved – just now perhaps they won’t need to have such a large sum of cash on hand to pay a deposit and cover transfer costs.”

Prinsloo says that in due course – and if inflation tails down later this year as expected – the banks will probably also become more negotiable once again on interest rates.

“Meanwhile, bond applicants can at the very least expect higher levels of service and faster response times, as banks increasingly relearn that home loan borrowers are very often the most loyal consumers of their other, very profitable, banking products and services – and not just a high-risk nuisance as they have often been viewed in recent years.”

From an industry point of view, he says, the results of this shift in attitude will be an increase in the number of loans granted, and a decrease in the number of “repeat” sales for estate agents. “Indeed, originators are already reporting an increase in volumes of loans being approved over the past few weeks, and that will inexorably lead to surplus stock being absorbed and home prices starting to show real increases. In short, it will open the way to the proper recovery of the market over the next two to three years.”

Please contact us if you require any further information or would like to apply for finance:

Complete this short form online

011.327.4489 / 0861 1111 93

morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za

Get your Home Loan Pre-Approval Certificate today and Make sure you're qualified before you buy.

It's a fantastic time to be buying property, but there's no point in starting your property search unless you know the bond amount for which you'll qualify.

When buying property in the currently soaring South African property market, a pre-approval certificate can be just the thing you need to close the deal. It removes the uncertainty, knowing up front how much you qualify for.

When you are searching for your ideal property, having this certificate will also allow you to negotiate a better price. It shows the seller that you are serious, smart and prepared.

The seller will know that you will not have any trouble getting your home loan because you are already pre-approved for a certain amount. The whole process of getting pre-approved takes about 1 to 2 working days.

One common misconception is that getting your pre-approval certificate is as easy as answering a couple of questions. In reality, you have to go through the same process as when applying for a home loan. This is the only way to know for certain how much you will qualify for.

There is also a difference between pre-qualification and pre-approval certificates. Pre-qualification usually means that according to the information you supplied, you would qualify for a home loan. Pre-approval on the other hand means that a bank has already approved your application in principle.

You should not have any trouble getting you loan registered. This certificate does not guarantee your home loan in all cases however. There might be other unforeseen reasons such as when the property is valued for a much lower price than you were applying for. Just make sure you know what the value of the property is and also what similar neighbouring properties are selling for.

To apply for a pre-approval certificate Send an email to Mortgage Plus and we'll do the sums that will set you on your way to becoming a property owner!

E-mail morne@mortgagepluscc.co.za

Tip: Providing the Bond Originator with required information

The selected bond originator (Mortgage Plus) will require certain information that is essential for completing the pre-approval process. This information will enable the bond originator to determine your ability to pay the monthly bond instalments.
Most financial institutions require three to six months payslips or bank statements as proof of income as well as a list of monthly expenses. High debts will increase their risk and therefor increase your interest rate.

Please contact us if you require any further information or would like to apply for finance:

Complete this short form online

011.327.4489 / 0861 1111 93

morne@mortgagepluscc.co.za

www.mortgagepluscc.co.za